03/31/1998 01:36 PM Senate L&C

         SB 232 - ELECTRONIC RECORDS; RECORD REQUIREMENTS                      
                                                                               
CHAIRMAN LEMAN announced SB 232 to be up for consideration.                    
                                                                               
MR. RICH VITALE, Aide to Senator Sean Parnell, sponsor, said                   
Senator Parnell introduced this legislation at the request of the              
Lieutenant Governor who is the Chairman of the Telecommunications              
Information Counsel, which Senator Parnell serves on.  Currently,              
two states, Washington and Utah, have adopted statutes to                      
standardize the practice of electronic signatures.  The legislation            
is pending in most other states.  SB 232 will help continue                    
Alaska's intrastate, interstate, and global economic growth by                 
providing a legal framework for use of electronic signature                    
commerce.                                                                      
                                                                               
Specifically, SB 232 establishes electronic signatures as a legal              
practice with the same standing as a standard signature.  This act             
allows the Lieutenant Governor's office or other state agencies to             
develop regulations for using electronic signatures by private or              
public entities and establishes criteria for electronic signature              
regulations.  Lastly, this act repeals some state agencies'                    
notarization requirements to better utilize the efficiencies of                
electronic signatures.  SB 232 is an important component to keeping            
Alaska competitive and efficient in both public and private                    
business practices.                                                            
                                                                               
MR. VITALE said on page 1, line 8, there is reference to penalty of            
unsworn falsification and that is a reference to AS 11.56.210.                 
                                                                               
CHAIRMAN LEMAN asked if there was a definition of electronic                   
signature.                                                                     
                                                                               
MR. VITALE said he thought that would be part of the state                     
regulation.  There was an example in the back of their packet.                 
                                                                               
MR. ANDY KLINE, Office of the Lieutenant Governor, added that there            
is a definition within the bill that, as specifically as they                  
intend to, defines what an electronic signature means.  In a                   
statute that deals with technology, it's best to leave as much of              
the specific definitions out of the statute, leaving it to                     
regulations which can change and try to keep pace with the speed               
with which technology changes.  It's on page 4, line 3 of the bill.            
                                                                               
COMMISSIONER BOYER, Department of Administration, said he was                  
available to answer questions.                                                 
                                                                               
SENATOR KELLY asked Ms. Juanita Hensley, Chief, Drivers Services,              
Division of Motor Vehicles, how this would affect the Division of              
Motor Vehicles.                                                                
                                                                               
MS. HENSLEY answered that they feel this bill has a great potential            
to follow up with all the efficiencies the Division of Motor                   
Vehicles is trying to do to make DMV a more customer-friendly                  
agency.  Faxing is one method of electronic signature; issuing a               
PIN number is another.  Having the capability of issuing a digital             
driver's license and a digital image driver's license will allow               
them to replace lost licenses, for instance, within minutes instead            
of days eliminating the need to send paperwork through the mail.               
                                                                               
SENATOR KELLY asked if lines at DMV were getting shorter.                      
                                                                               
MS. HENSLEY replied that it's going to take time to make all the               
changes they want to make to shorten the lines.  "We have an                   
increased population and everything they do is basically keeping up            
with them moving in.  There are lots of things we can do like                  
opening up express offices."                                                   
                                                                               
SENATOR KELLY said he heard recently that while Alaska is having a             
population growth, we are also experiencing an outmigration. More              
children are being born here.                                                  
                                                                               
MS. HENSLEY added in 1996, there were 629,000 registered vehicles              
and in 1997 there were 658,000.  Residents are buying more cars.               
                                                                               
Number 160                                                                     
                                                                               
MR. CHARLES MCKEE commented on SB 232.                                         
                                                                               
SENATOR KELLY moved to pass SB 232 from Committee with individual              
recommendations.  There were no objections and it was so ordered.